Positioning Statement: We will make hairstyling efficient and easy to do for people on the go.
Pricing Strategy: The comb itself will be sold for $10 and the tubes for $5 for a pack of $15.00. Later on if our product becomes big we will then add up the price a little for $20.00.
Sales Strategy: Travel Comb's Sales strategy is to sell our product to cosmetic retailers who will try to introduce our product to the customers of the new product. People will want to check out our product because it's new and people often are curious towards new inventions and captivated by it. We will also have sales men advertise our product to people through phone.
Revenue Streams: All together the comb and gel together cost $15, but every month or two people will have to repurchase the gel tube for a cost of $5.00 if in a pack. One single gel tube is $1.00. So a pack of 5 gel tubes is $5.00.
Sales Forecast: From our start off merchandise our online webpage we estimate during our first month we will gain $200 worth from our product. When taking into consideration manufacturing our gross income for the first month will be around $170.
Milestones:Our milestone for the first month is to sell 200 dollars worth of merchandise on our webpage, which for the first month are 12 combs worth of merchandise. For the purchasers this low stock will create a demand and increase sells for next month. The gross income we aim to achieve the first month is $170 counting the material cost and manufacturing. Through advertisement and recommendations our goal for the second month is to increase stock to equal around $300, which will bring us a $255 income already accounting the cost to manufacture. At the end of two months our net worth will be $425. Our goal is to increase sales by .5 each month which is estimated to remain constant for the first 6-7 months when we push advertisement and focus on subscriptions.
Assumptions: Here are our important key assumptions:
1.We assume that our sales will increase for each month by .5%.
2. We also assume that the constant rate of customers buying our product will increase after the first month.
3. We assume that through advertising and the curiosity of consumers, people who like styling their hair will want to buy our product more.
Break-even analysis: We will already break even on our first month. We will manufacture 12 combs on the first month which will bring us income of $200. Our combs will be priced at $15 each. We will break even during the first month sales with $170 net worth.
Projected Profit and Loss: We estimate the profit gain $170 for the first month. Our projected loss is $30 for every 12 combs for the material and manufacturing cost.
Month 1:
Online: $200.00 Material Cost: $10.00
Manufacturing Cost: $20.00
All sales: $200.00 Cost of goods: $30.00
Gross profit: 170.00
Month 2:
Online: $300.00 Material Cost: $15.00
Manufacturing Cost: $30.00
All sales: $300.00 Cost of goods: $45.00
Gross profit: $255.00
Projected Cash Flow:
Our projected cash flow will gradually be increasing and due to the cheap cost of the materials needed to create our product we can always expect to make at least $10 with every sale. When our product becomes widespread and all 12 combs in a package sell then we get an income of $170.00.
Pricing Strategy: The comb itself will be sold for $10 and the tubes for $5 for a pack of $15.00. Later on if our product becomes big we will then add up the price a little for $20.00.
Sales Strategy: Travel Comb's Sales strategy is to sell our product to cosmetic retailers who will try to introduce our product to the customers of the new product. People will want to check out our product because it's new and people often are curious towards new inventions and captivated by it. We will also have sales men advertise our product to people through phone.
Revenue Streams: All together the comb and gel together cost $15, but every month or two people will have to repurchase the gel tube for a cost of $5.00 if in a pack. One single gel tube is $1.00. So a pack of 5 gel tubes is $5.00.
Sales Forecast: From our start off merchandise our online webpage we estimate during our first month we will gain $200 worth from our product. When taking into consideration manufacturing our gross income for the first month will be around $170.
Milestones:Our milestone for the first month is to sell 200 dollars worth of merchandise on our webpage, which for the first month are 12 combs worth of merchandise. For the purchasers this low stock will create a demand and increase sells for next month. The gross income we aim to achieve the first month is $170 counting the material cost and manufacturing. Through advertisement and recommendations our goal for the second month is to increase stock to equal around $300, which will bring us a $255 income already accounting the cost to manufacture. At the end of two months our net worth will be $425. Our goal is to increase sales by .5 each month which is estimated to remain constant for the first 6-7 months when we push advertisement and focus on subscriptions.
Assumptions: Here are our important key assumptions:
1.We assume that our sales will increase for each month by .5%.
2. We also assume that the constant rate of customers buying our product will increase after the first month.
3. We assume that through advertising and the curiosity of consumers, people who like styling their hair will want to buy our product more.
Break-even analysis: We will already break even on our first month. We will manufacture 12 combs on the first month which will bring us income of $200. Our combs will be priced at $15 each. We will break even during the first month sales with $170 net worth.
Projected Profit and Loss: We estimate the profit gain $170 for the first month. Our projected loss is $30 for every 12 combs for the material and manufacturing cost.
Month 1:
Online: $200.00 Material Cost: $10.00
Manufacturing Cost: $20.00
All sales: $200.00 Cost of goods: $30.00
Gross profit: 170.00
Month 2:
Online: $300.00 Material Cost: $15.00
Manufacturing Cost: $30.00
All sales: $300.00 Cost of goods: $45.00
Gross profit: $255.00
Projected Cash Flow:
Our projected cash flow will gradually be increasing and due to the cheap cost of the materials needed to create our product we can always expect to make at least $10 with every sale. When our product becomes widespread and all 12 combs in a package sell then we get an income of $170.00.
Projected balance sheet:
Business Ratios: